Magazine article Business Credit

The Culture of Construction

Magazine article Business Credit

The Culture of Construction

Article excerpt

No matter how many times it is said, it can be difficult to comprehend how complex construction can be for trade creditors. "Should I notice or should I not? Is it even required to do so for the project I am supplying? Should I wait it out and hope to get paid or follow the statutory steps to perfect a mechanic's lien?" Many times these are tough questions for creditors to answer.

Credit is based on relationships, and even more so in the construction industry. It Is often the case that material suppliers will not take the steps needed to secure themselves on a construction project, putting their payment in jeopardy, in order to make a customer happy, keep a job or be considered for future projects.

"[R]eluctance to ruffle anyone's feathers by early notification, however understandable or common In the Industry, does not change the plain meaning of the statute," quoted the Commonwealth of Massachusetts Appeals Court from BloomSouth Flooring Corp. V. Boys' & Girls' Club of Taunton, Inc. In a recent case on the topic. This Is due to a mechanic's lien being part of a statute and not a common-law right, added the appellate court.

For David Zahller, CCE, credit manager, with Tubular Steel, it Is a conscious business decision to not file and serve notices or liens to higher ups in the construction chain of command with one exception--California. …

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